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Monday, 9 June 2014

Nam Cheong CEO Positive on OSV Market

Malaysia Star Newspaper interviewed SGX listed Nam Cheong CEO Leong Seng Keat and reported last Saturday, hearing from Leong that OSV market is still resilient in the near term.Below is a summary of important points.OSV Outlook Positive

Shallow Water Market Recession Proof in Near Term

Nam Cheong able to sustain 20-30% growth momentum of the past few years.

Industry data suggest positive outlook due to increasing number of rigs in operation and 30% of global AHTS fleet above 25 years of age to be replaced.

Nam Cheong's Solid Fundamentals

Nam Cheong superb results, with revenue surging 74% to RM407.3mil and net profit up 99% to RM71.3mil. Order book stands at RM1.4bil made up of 23 vessels for delivery up to 2016. Two-thirds of its business is from repeat customers.

Nam Cheong to build 30 vessels 2014 and 35 vessels in 2015 up from its record 20 last year.

Roughly 80% of its production is outsourced to shipyards in
China’s Fujian, Mawei and Xiamen provinces, where ships can be produced cheaply
and quickly.

Nam Cheong to Launch new fuel-Efficient Vessels.

Nam Cheong’s market share is estimated at 12% globally and
75% in Malaysia.

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